Party may be over for defence story, but long-term, here are 2 stocks to bet on: Hemang Jani
Hemang Jani, Independent Market Expert, says the party in defence stocks lasted for a good time and it was much more exciting than we thought it could be. But now that the reality check has come to the basics in terms of the valuation and growth we are looking at. When you see the numbers that some of the companies have reported, they are not displaying that. As a theme, the party is over. But as an allocation stock, if one wants to take a longer-term view, maybe BEL, which is still growing at 30-35%, is not bad. Also, HAL is growing at a very high rate. These are the two names that Jani is comfortable with.
One pocket of the market which got active yesterday after a long gap was small to mid to higher NBFCs, the Shriram Finances of the world. Chola came back after a weakish number, as did Sammaan Financial, the erstwhile Indiabulls Housing. Is this space bottoming out? Fusion or even Credit Grameen showed some spark. Is this space ripe for stock picking or is it too early to get into NBFCs?
Hemang Jani: We are seeing a good momentum in some of the pockets as you mentioned, whether it is Shriram Transport Finance or Chola. Indiabulls Housing is a different stock altogether. A part of that has something to do with the fact that within the banking vertical you are seeing a part of the money being diverted from the banks to the NBFC and the insurance because as we all know the banks are grappling with the growth on the deposit side. NIMs are under pressure. And the sector is underperforming.
So, a part of that flow
